Banks Accelerate for Labor Assistance Funds: Offering Strong Benefits to Attract Compensation Funds

It is estimated that the Labor Assistance Funds (FAL) will move nearly $2 billion annually, which has sparked a fierce dispute between banks and brokerage firms to capture the money that comes from workers' contributions. The contribution will be 2.5% for employees of SMEs and 1% for those of large companies. Therefore, some entities have already begun to offer zero commission and exclusive benefits for companies, aiming at least to double their current corporate client portfolio. The National Securities Commission (CNV) estimated that nearly 60% of Argentine companies are not familiar with investments, so these funds could be directed to banks. Brokerage firms anticipate that if they capture 30% of the market, it would be a success. Banks have the advantage due to their payroll and salary payment capabilities. "It would be natural for a bank, which has a primary role in payrolls, to be the provider of FAL services," stated an entity to Ámbito. Banco Macro commented to Ámbito that they will offer waiving the FAL commission to clients with whom they have "primary role" and who agree to manage those funds through the entity. Although they highlighted that the business does not represent significant profitability for the bank, they did not rule out providing greater benefits in the future. The entity led by Jorge Brito, with a strong presence in the interior of the country, expects to manage the FAL of about 15,000 companies. "These are the ones that have a primary role and, at the same time, with whom we have been talking. It is not guaranteed, but they told us they would put the funds in our vehicles," said Dicky Muñoz, CEO of Macro Fondos. Meanwhile, BBVA indicated to this media outlet that companies and SMEs that choose this entity to manage their FAL between August 1 and December 31, 2026 will receive a 100% discount on the fund management commission from their incorporation and throughout 2027. Additionally, companies that incorporate net payrolls during that period will receive, throughout 2027, a 100% refund of the FAL contribution corresponding to those payrolls. This means that the equivalent money will be credited to the company's account. With this measure, the bank seeks to integrate its management of FAL with payroll management. The entity will offer two multi-company mutual funds: one short-term for a more conservative profile, with lower volatility, for companies with high turnover; and another medium-long term for companies with a moderate risk profile and potential for higher profitability. In Balanz, on the other hand, they will offer three fund profiles: one very short with an average duration of no more than 3 months, for companies with high turnover; the second, with 6 months duration, for moderate turnover; and the third, with approximately one year duration, for those companies with lower turnover. "Additionally, for those companies or groups of companies that need it, we will also have tailored FAL fund options to meet their needs," said Gabriela Friedlander, Director of Asset Management at Balanz. This measure is still being evaluated in different banks, as they do not plan to offer trusts and a different fund only if it is convenient. Meanwhile, Insider Finance proposed a FAL that includes the entire universe of its clients. "The proposal will be mainly aimed at SMEs, from very small companies with three employees to companies that may have 500 or even 1,000 workers," emphasized Pablo Lazzati, CEO of Insider Finance. The investment asset menu, according to Resolution of the Ministry of Economy 1276/26, will be mostly directed to sovereign instruments, such as Lecaps and bonds with CER, dual, and TAMAR. In the case of corporate and provincial bonds, to be included in the FAL portfolio, the regulation requires two AAA rating reports. Additionally, the regulation imposes a cap of 20% for companies and 15% for provinces combined, respectively. In the case of ON, there is a cap of 10% per issuer and related parties, and as Ámbito has already reported, currently only eight companies meet this requirement. For provinces, the cap is 5% per jurisdiction, and in the particular case of CABA, the second AAA rating obtained last week by Moody's allows its inclusion in FAL portfolios, always with the mentioned cap of 5%. It is worth noting that last Monday the public consultation deadline sent by the CNV expired, and the final resolution is pending after the clarifications made by the market. However, the most important is that of ARCA. The regulations from the Ministry of Labor and the Financial Information Unit (UIF) are also pending. The FAL should begin operating on November 1, although there is still a "rumor" in the market that its implementation could be postponed by a month. This is because the labor reform contemplated the possibility of extending its implementation for six months, and November will be just the fifth month since the law was passed.

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